The Former CEO of 23andMe Is Buying the Company Back
When previously we talked about 23andMe’s bankruptcy sale, we suggested you might want to delete your genetic data from the site, since we didn’t know who would end up owning it. Then, a company named Regeneron announced they would buy the company, and would “prioritize [consumer data’s] privacy, security and ethical use.” Now there’s been another twist: That company was outbid just before the sale closed, by a nonprofit led by the former CEO of 23andMe, Anne Wojcicki.
TTAM will officially be 23andMe’s owner (probably)
According to a 23andMe press release, the bankrupt company’s holding company reached an agreement with a nonprofit called TTAM for TTAM to buy the company. The sale is for “all of the Company’s assets, including the Personal Genome Service (PGS) and Research Services business lines and the Lemonaid Health business, for a purchase price of $305 million.” Anne Wojcicki, former CEO of 23andMe, is also at the helm of TTAM. So, in a sense, a company much like the old one is buying its (your) data back.
The last-minute bid was supervised by a bankruptcy court, and was deemed to be in keeping with the company’s duty to provide the most value to its shareholders. Regeneron told CNN that they did not submit a higher bid “based on our assessment of 23andMe’s remaining value.”
The sale is not yet finalized, but is expected to receive final court approval on June 17, and close shortly afterward. Until it closes, Regeneron is considered the sale’s backup bidder.
Regeneron will no longer be 23andMe’s new owner
Previously it had been reported that 23andMe’s new buyer, paying $256 million for the company’s assets, was Regeneron. Regeneron is a biotech company perhaps best known for developing an antibody treatment for COVID early in the pandemic. (Donald Trump was given a dose when he first came down with the virus.) That treatment never made it all the way to market, but the company does market other antibody- and protein-based treatments for conditions like Ebola virus, genetic disorders, and cancers.
Regeneron’s website stated that they “are shaping the next frontier of medicine with data-powered insights from the Regeneron Genetics Center® and pioneering genetic medicine platforms, enabling us to identify innovative targets and complementary approaches to potentially treat or cure diseases.”
That explains why they were interested in 23andMe, since it provides a trove of genetic data. Many 23andMe users had also signed up to provide more of their personal medical information for research purposes (this was a separate thing that you would have had to opt in to provide).
Regeneron said they planned to “continue all consumer genome services uninterrupted,” rather than shut down the company. Lemonaid health, also owned by 23andMe, was not included in the planned sale. (It is included in the new sale to TTAM.)
What do you think so far?
What this means for your data and privacy
TTAM said in the press release that they plan to honor all of 23andMe’s privacy policies, and that they will not sell consumer data in the future unless the buyer also agrees to honor those policies. They will also establish a Consumer Privacy Advocacy Board, and will give all customers two years of Experian credit monitoring for free. They say “all customers will be emailed at least two business days before closing with details on TTAM’s role, TTAM’s commitment to privacy choices, and instructions on how to delete data or opt out of research.”
Regeneron had also said they will respect the company’s privacy policy (“and applicable laws”). The sale would have also included a court-appointed “consumer privacy ombudsman” whose job is to make sure that everyone’s data is treated appropriately. Regeneron had said that they’re ready to work with this ombudsman and will detail all their privacy-related plans.
When we thought the buyer was Regeneron, I was tentatively optimistic. Yes, a corporation would have your data and intended to profit from it; but that was also true of 23andMe in its heyday. The policies about privacy and consent that you agreed to when contributing your data will still be in effect.
Now that the data is going to a 23andMe-adjacent nonprofit, which is also making similar promises, I guess nothing much has changed. That said, Wojcicki was CEO when 23andMe had a massive data breach, which hardly inspires confidence.
